DLF Q2 Profit Rises 11% on Rs 3,800 Crore Sales Bookings

Real estate major DLF reported an 11.1 per cent year-on-year increase in consolidated net profit to Rs 1,301.35 crore for the second quarter of FY27, as the DLF Q2 performance was powered by a sharp sequential rebound in sales bookings and strong operating cash flows.

The company announced its DLF Q2 results on Friday after market hours. Revenue from operations fell 23.3 per cent to Rs 1,260.58 crore in the quarter ended September, while total income rose marginally to Rs 2,297.30 crore, according to the company's regulatory filing. Earnings before interest, tax, depreciation and amortisation increased 17.5 per cent to Rs 1,060 crore from Rs 902 crore in the corresponding period last year.

On a sequential basis, net profit jumped 63.9 per cent from Rs 793.90 crore reported in the first quarter of FY27, underlining the momentum in the DLF Q2 numbers. New sales bookings surged 478.7 per cent quarter on quarter to Rs 3,800 crore during the quarter, the strongest booking performance in recent quarters for Indian real estate earnings.

DLF Q2 bookings surge on luxury sell-outs

The booking rebound was driven by continued demand for DLF's luxury and super-luxury portfolio. Earlier this month, Aakash Ohri, managing director and chief business officer at DLF, told Business Standard that the company's luxury retirement housing project, The Aureva in Gurugram, was completely sold out. DLF sales bookings also drew support from sustained demand for its super-luxury residential project, The Dahlias.

Operating cash flow improved 41.2 per cent quarter on quarter to Rs 1,858 crore, up from Rs 1,317 crore in the previous quarter. The company collected Rs 2,622 crore from property sales and Rs 158 crore in rental income during the quarter, taking total cash inflows to Rs 2,780 crore. The net cash position stood at Rs 15,084 crore, despite a significant dividend outflow of Rs 1,980 crore during the quarter.

DLF Q2 cash flows and net cash strengthen

DLF rental arm DCCDL delivered a steady performance in the quarter. Consolidated revenue from the rental business rose 11 per cent year on year to Rs 2,014 crore, while net profit increased 17 per cent to Rs 752 crore, adding ballast to the DLF Q2 results.

Ashok Tyagi, managing director and chief executive officer at DLF, said construction outflows could experience a temporary decline as the industry enters a phase of labour migration owing to the festival season and the Graded Response Action Plan guidelines enforced in the NCR to curb air pollution. Allaying concerns, Tyagi said the company had ensured that contractors and labour arrangements were in place to maintain decent progress.

For the rental portfolio, where DLF rental arm DCCDL operates, the company expects a quarterly exit run rate of Rs 175-180 crore, equivalent to Rs 750 crore on an annual basis. Tyagi added that DLF would continue to maintain an annual dividend policy, with a more predictable dividend pipeline from DCCDL to DLF on a regular basis.

What lies ahead after a mixed DLF Q2

The DLF share price closed 0.66 per cent higher at Rs 674 apiece on the Bombay Stock Exchange on Friday. Management commentary pointed to revenue growth from FY28 as projects worth around Rs 75,000 crore near completion, with a remaining launch pipeline of about Rs 58,230 crore in sale potential in the medium term.

While revenue recognition was muted in the quarter, the surge in DLF sales bookings and the record net cash position give the developer significant firepower for new launches and land acquisitions. For investors tracking the DLF share price and Indian real estate earnings, the DLF Q2 print signals that demand at the top end of the housing market remains resilient even as reported revenues move with project completion cycles.